Also, foreign businesses today are looking for opportunities to get their supply chains out of China, rather than into it.
At some point, their system is going to have to re-value things back to reality, and that is going to be a pretty massive re-valuation.
Also, a possible silver lining, “filthy Democrat cities to be hit hardest”.
https://youtu.be/u6YpKEeaVlU?t=3370
See where the outbreak is hurting Corona beer sales because some idiots think that the beer carries the virus?
[Unlike during the SARS outbreak in 2003, the Chinese financial system is now overburdened with historically huge amounts of debt - a large chunk of which will never be repaid. ]
A trillion dollar hit to the economy each and every month this continues, we’ve past the first month, figure two more months and then they can start production on orders from 5 months ago. Meanwhile, people around the world are scrambling to find other sources who won’t be running back to China after.
This is assuming that everything goes perfectly. If not, it gets 10x worse.
“the Chinese financial system is now overburdened with historically huge amounts of debt - a large chunk of which will never be repaid.”
sounds like the U.S.
Good, bring those businesses back to America and let the communist regime crash and burn.
Bring Out Your Dead
Post to me or FReep mail to be on/off the Bring Out Your Dead ping list.
The purpose of the Bring Out Your Dead ping list (formerly the Ebola ping list) is very early warning of emerging pandemics, as such it has a high false positive rate.
So far the false positive rate is 100%.
At some point we may well have a high mortality pandemic, and likely as not the Bring Out Your Dead threads will miss the beginning entirely.
*sigh* Such is life, and death...
If a quarantine saves just one child's life, it's worth it.
“At some point...” China Markets up today.
If all goes as expected they’ll be back in production Mar 1.
And the hit will be significant but manageable.
If not, they’re toast.
I’ve been posting that this IS going to have dramatic effect on markets eventually, but not well received. Oh well...also told people YEARS ago that illegal immigration was going to be THE issue and was ignored. lolol.
Simply too early to know what will happen.
I have trouble believing the whole world won’t be in a recession or worse, very soon.
The New York City, Los Angeles and San Francisco real estate markets will weaken significantly as Asians stop transferring funds to the US by purchasing property. The Chinese especially appreciate the property right guarantees of US law.
Given the massive real estate bubble and now this which is both hugely slowing production in the short term and speeding up the decampment from China of lots of Western businesses, I wonder how long before the bubble bursts. It is huge - far far bigger than we had in 2007.
What’s bad for China’s economy is good for ours in the long run.
I have wondered if this virus is giving us leverage over China regarding trade negotiations.
This could be very damaging. If major customers are able to set up shop elsewhere, they will leave China permanently.
I have to admit i’m running a little short on tears for the Chinese.
Over the last five years I have steadily watched as one of my accounts slowly faded away to China, on Friday they informed us they are moving back to sourcing in America.
I picked up an order for 325 chairs and 200 stools that’s valued over 50,000.00, yep i’m a little short on tears at this time.
At the risk of sounding morbid, this looks like the moment where a lot of our debt to China becomes negotiable.